They’re feuding at Live Nation
The Wall Street Journal says Cohl is currently negotiating his resignation, having fought with Chief Executive Michael Rapino for weeks over so-called “360 deals.” In such deals, Live Nation gives superstars hefty upfront payments in exchange for financial rights in nearly all their business. Think Madonna and U2 and Jay-Z.
It seems, according to the reports, fairly simple: Cohl wants to sign more of these deals and Rapino wants the pace of these signings to slow; the board tells them to work out their differences; Cohl heads out the door.
Still, there is the fundamental question of whether these “360 deals” are good business or not. As the New York Times points out, the “deals were expensive for Live Nation – a reported $120 million for Madonna and $150 million for Jay-Z – spurring many industry executives and analysts to debate whether the company was paying too much.”
While Cohl could be gone as soon as next week, it will take some time to sort through which executive had it right.
Keep an eye on:
- Online social network site Facebook.com has launched a version targeting mainland Chinese Web surfers to compete with local and overseas rivals in the world’s largest Internet market (Reuters)
- Viacom Inc’s Paramount Pictures must show it can thrive in the film industry without some of Hollywood’s top talent, if DreamWorks’ Steven Spielberg and others bolt (WSJ.com)
- After taking on the big and small screens, comic book heroes like Spiderman and Superman may soon be appearing on an even smaller screen — your mobile phone (Reuters)
- Microsoft isn’t about to kickstart a bunch of internet acquisitions after its failed move on Yahoo (FT.com)
- After the departure of former chief executive Victor Ganzi, speculation about who will ultimately succeed him is swirling at Hearst (NY Post)